The head of the U.S. Federal Reserve Janet Yellen spoke in the U.S. Senate. She said that at one of the meetings to be held in the next few months, a decision will be taken to increase the interest rate.
Yellen believes that there are already necessary conditions for this. The U.S. economy is growing at a moderate rate. Inflation is close to the target of 2 per cent. Positive changes are also observed in the labor market of the country. The number of jobs has increased by 16 million in recent years.
The head of the Fed believes that in such a situation, delaying the rate hike may be dangerous, because it will lead to an accelerated rate of rate hike in the future. Such dynamics will have a negative impact on the American economy and global financial markets. Approximately 30 percent of the experts surveyed expect the Fed’s rate to rise at the March 14-15 meeting.
Janet Yellen also announced that the Open Market Committee will be discussing a possible sale of assets in the near future. Over the past nine years, the Fed’s balance sheet has grown to $4.5 trillion. It needs to be reduced.